Kanban Squares - Meaning & Definition

Published in Operations and Supply Chain Terms by MBA Skool Team

What is Kanban Squares?

Kanban is method to achieve Just-In-Time manufacturing in which the production is controlled by taking effective care of the logistics. The main purpose of Kanban systems is to ensure better visibility of the production line between producers and suppliers and thus ensure a highly efficient and effective production system. Kanban Squares are used mostly in assembly operations where inventory is stored on the factory floor.

The Kanban Squares are marked on the workbench or floor between the operations and are used to keep stock of inventory. These spaces are designed in such a manner that they can hold only a specific number of pallets and they are usually color coded in order to identify when the Kanban was full in which case the operations in the upstream could switch to another activity or shut down depending on its flexibility. Also the squares give an indication when the replenishment level or safety stock level has been reached and again the upstream operations can resume. The squares can be without any safety stock level as well in which case the re-order process starts when the square becomes empty.

For example: In many car assembly floors Kanban Sqaures are used to control the inventory and implement JIT through greater visibility at the upstream of the downstream production processes.


Hence, this concludes the definition of Kanban Squares along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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